Anglesey Mining plc announced a projected production of 2 million tonnes iron ore per annum at its Canadian interest.
The company holds a 12% interest Labrador Iron Mines Holdings Ltd (LIMH) which has released the details of a preliminary economic assessment (PEA) on its 52% owned Houston project.
LIMH holds direct shipping iron ore deposits in Labrador and Quebec.
The Houston PEA was prepared by Roscoe Postle Associates Inc reviewed the development of the Houston and Malcolm deposits in Newfoundland and Labrador and in Quebec.
Anglesey said that the PEA suggested a production time frame of 12 years after an 18-month construction period.
“Iron ore production would amount to approximately 2 million tonnes per annum of 62% iron lump and sinter direct shipping ore.
“Initial capital cost including contingency is forecast at a relatively low US$65 million.
“The forecast after tax financial results [is] strong with an NPV8 and an IRR at US$90 per tonne for 62% Fe ore of CA$109 million and 39% respectively.
“Using the current 62% Fe ore prices of US$160 per tonne increases these financial results to CA$459 million and 209% respectively.”
Anglesey’s main project is its 100% owned Parys Mountain copper-zinc-lead deposit in North Wales.